부천토익과외 of GRE/GMAT/SAT tests each year, we estimate the test-preparation 부천 토익 market size for this segment at US$20m, out of an overall US$1.7bn test-preparation market in India. Scalability remains a challenge unless Everonn expands beyond the current repository of tests into more lucrative segments. Overall, we have not assumed material contributions from new businesses to the revenue over the next two years. We believe this is justified given the lack of visibility on plans as of now. However, this remains a risk to our view. Everonn’s opportunity canvas needs to widen Currently mapping about US$1.5bn 부천 토익 worth of market segments in the US$40bn Indian-education market, Everonn has a decent presence in some fast-growing areas such as IT training in public schools and reasonably large areas, eg, vocational and services training.부천 토익 It also intends to get into school management and multimedia education in schools, areas in which we maintain a very positive view. Everonn’s coverage in the Indian-Education space 0 10 20 30 40 50 60 70 80 90 1 10 100 1,000 10,000 100,000 Market size (US$m) Services training K-12 IT training in public schools Multimedia 부천 토익 in schools (% Cagr in next five years) Source: CLSA Asia-Pacific Markets However, Everonn’s high capex intensity stemming from IEIS continues to be an overhang and limits its ability to invest in other areas in our view. Also, it will have to raise capital to meet our 50%+ YoY revenue growth number for the next two years. This makes Everonn’s financial metrics inferior to some of the other players in the segment. While upsides may come from increased operating leverage in ViTELS, we will wait for proof of execution before factoring in this. Overall, Everonn’s plans need to translate into visible rampups before financial projections can be valued in its new ventures. We rate the stock an Underperform with a target of Rs680, based on the same PE/G as Educomp, which implies a 46x FY09CL/30xFY10CL PE. Though the stock is present in some good segments and attempts to get in a few highly scalable businesses
